Regional banks used to have the advantage of flexibility, a custom-tailored approach, and faster loan approval over credit institutions that operate on a federal level. In recent years, the situation has shifted in favour of the latter, in part as a result of significant investments and other opportunities that regional banks do not have the means for or access to. Consequently, regional banks have been forced to shift their focus to operations in the interbank lending market and with the Bank of Russia. In response, the Bank of Russia has enacted proportional regulations, created the Marketplace platform, and helped improve the deposit insurance system by extending it to include small enterprise assets. Is this enough to activate the development of regional banks? What is their role today?